From Inc Magazine: Health Insurance Nightmare Stories

Reposted from Inc Magazine- By Bill Murphy Jr. www.billmurphyjr.com @BillMurphyJr

This story is about Whole Foods, and its decision to stop offering health insurance to 1,900 part-time workers as of January 1, 2020.

But first, a public service message. If you ever meet parents who adopt a child but run into trouble adding their child to their health insurance, tell them there's a federal law they need to learn quickly: 29 U.S. Code §​1169(c)(1), which was part of the Omnibus Budget Reconciliation Act of 1993.

I learned about this law a few years ago, when my wife and I adopted our daughter. Adding her to our policy was a rough ordeal -- hours and hours on the phone, running up medical bills in the meantime, and being distracted during time I wanted to spend with my family. Ultimately, we won after I wrote some stern letters and threatened a lawsuit. The company even apologized and promised to change how they train their employees.

It's probably my biggest Health Insurance Nightmare Story. Many of us have one. And that shared experience is why the Whole Foods decision could come back to haunt the company.

The move was first reported by Business Insider last Thursday. Compare the Whole Foods’s recruitment website today to an archived version from August:

• Today: "We provide all full-time Team Members with access to health insurance to keep you feeling great."

• Last month: "Whether you're salaried or working 20 hours a week in-store, we provide you access to health insurance to keep you feeling great."

Why do it? One report says this will likely save the Amazon-owned Whole Foods $19 million a year. That happens to be roughly what Amazon founder and CEO Jeff Bezos reportedly makes in a little under five hours. Those savings might be less, Whole Foods told me in an emailed statement, because it expects some affected workers to shift to full-time:

• Impacted Team Members in good standing have the opportunity to move into one of the thousands of full-time roles, where they will be eligible for the same Whole Foods Market healthcare plan at a more affordable rate.

• The majority of Team Members only need to work an additional five hours per week to qualify for healthcare-eligible positions.

But picking up more hours means paying for childcare for some employees. One Whole Foods worker told Business Insider she was "in shock" after learning the news, adding: "I've worked here 15 years. This is why I keep the job -- because of my benefits."

This might make some kind of sense as a financial decision. But as a culture and perception issue, it seems crazy. Whole Foods has a great reputation for customer service. That's part of why it was worth $13.7 billion when Amazon acquired it in 2017. The way they've treated their employees historically was part of what made it all work.

I've shopped there forever, and the employees are a big reason why. But as I’ve seen so often -- heck, I even wrote about it yesterday -- the hardest thing to build in any organization is culture. A close second might be the perception of culture. Start chipping away at the pieces for short-term gain, and it can fall apart quickly.

Health care and how Americans pay for it is one of the most relevant, relatable, and volatile political issues in this country today. It's why medical debt is the No. 1 cause of personal bankruptcy in the United States. It's why some people stick with jobs they hate.

Whole Foods has a very urban and liberal reputation, and it just became the target du jour of multiple prominent Democratic politicians. It seems like this decision could alienate some of its most loyal customers. So if you truly need to cut costs, Whole Foods, I'd look somewhere else.

But as a silver lining, thanks for the opportunity to talk about 29 U.S. Code §​1169(c)(1).

We all have our stories. I've been waiting for the chance to tell that one.